Offshore software development firms are all the rage right now, what with their ability to kick-start new IT startup businesses and stay ahead of the competition. If you wish to get in on the ground floor of this lucrative trend, the first thing you must do is chalk out a comprehensive business plan. However, all this is easier said than done. Even a small-scale offshore software development enterprise consists of numerous moving parts. Only when you familiarize yourself with every aspect will the endeavor be successful. So, without further ado, take a look at the basics of beginning your own small offshore software development company below:
Focus On What’s Important
You will initially encounter several hurdles. But the important thing is not to lose hope. Remember, the correct passion and knowledge can go a long way in this industry and fulfill your dream of becoming a software development mogul. When starting out, your software development company should develop software for clients located elsewhere. Keep in mind that different companies nowadays are willing to pay large sums of money for the right kind of software. But why outsource the tasks? Well, it mostly has to do with the high cost of availing local services. Depending on the location you service, offshore services normally command more reasonable rates.
Like other prospects, your aim should be to hire or locate talented software developers at the lowest possible rate. While the best opportunities are available in Israel, Ireland, India, and Canada, you can launch your own offshore software development company regardless of location as long as you put in the requisite amount of effort and due diligence. At the same time, do not neglect the importance of other considerations, including global connectivity, infrastructure, and most importantly, human capital. Remember, if you want to take your business operations to the next level, you will need plenty of capital. And it all hinges upon your business plan.
Draw Up a Full-Fledged Business Plan
The foundation of every good business lies in its business plan. For a small offshore software development firm, for example like development company LitsLink, you must conduct thorough research of the market and analyze the present situation. As long as you face no trouble proving the viability of this enterprise, your efforts will be met with success. Conduct proper market analysis to find out what the competition is up to and how you can get a leg up on them.
You need to scope out a decent location and lease or purchase a building that can be used as a command center. Of course, finding skilled and experienced software developers is no walk in the park, but if you clearly establish the minimum qualifications or standards, you will soon get the best manpower for your money’s worth.
Do not skimp on equipping your base of operations with the right set of equipment, such as the required fixtures and furniture. Arrange for the essentials like phone lines, utilities, Internet connectivity, business license well in advance. Your business plan will serve as a blueprint for your activities, so make sure to outline every single aspect of your operations. If necessary, your business plan can also help you secure a business loan from a financial institution. Funding is quite vital and will determine the long-term structure of your business.
Last but not the least, you should have sufficient knowledge of software development to understand what is going on. If you have a background in business management, that too can work in your favor while you are monitoring the processes.
Utilize the Proper Tools and Practices for the Job
Your offshore software development team must utilize well-known, popular practice tools, design patterns, application blocks, correct coding standards, build-and-deploy scripts, and a source-control server. Moreover, your business should harness the power of bug tracking tools, such as Atlassian, Jira, and BaseCamp. In distributed environments, your best bet for agile development is Microsoft Solutions Framework. In the case of outsourcing projects, use GitHub and similar repository hosting services.
Streamline Your Business Outsourcing Activities
The majority of firms outsource in one of two methods. Either they outsource a specific part of their regular operations, or they prefer to set up outsourcing as a strategic component of their business activities. No matter what, the current market has made it extremely easy to outsource a variety of tasks, whether a client is poised to scale or in the initial phases of developing their startup venture. The more you streamline your outsourcing activities, the more opportunities you have to provide high-quality services at decent rates.
Clients will normally toy with the idea of outsourcing by asking questions like:
- What tasks are worth outsourcing, and what activities should remain in-house?
- What benefits come from performing tasks in-house?
- Will it be a one-time, specialized service demand?
- Will someone else be better equipped to do the product more efficiently?
- Will the service cost less than the time and money it would take to complete jobs in-house?
Their answers will help determine if they need to outsource software development. If your new business can assure that you will contribute to the client’s short- and long-term success, then you have a loyal customer for life.
There are plenty of small offshore software development firms that provide access to a wide range of services, including mobile, web, and more. If the client wants to rapidly build web and mobile apps of the same quality, they would have to invest heavily in human resources. But your business should present outsourcing as the more lucrative option by clarifying how much funds the company stands to save on full-time staff if they outsource the software development tasks to your business and concentrate instead on other aspects of the company.
Play Up the Benefits of Offshore Software Development
Several reasons exist why it is better for clients to delegate software development activities to an offshore site. For starters, offshore outsourcing takes cultural compatibility to the next level by including people of other races, cultures, and time zones. While cultural differences are often believed to be the primary reason why offshore outsourcing is not as big as it should be, a good communicator can bridge the gap between diverse cultures and establish the seeds of a lasting partnership with the client.
Carefully Work Out Any Kinks in the Delivery Process
Your role as a software development firm entails the delivery of complex end-to-end solutions, irrespective of the scope and size of the project. Remember, the more professional knowledge you possess and best practices you follow, the stronger your delivery capabilities will be. While you’re at it, make sure you employ the latest technologies and methodologies to give your small firm a competitive edge.
Moreover, never make the mistake of downplaying the importance of collaboration and communication systems. This organ of your business plays a key role in synchronizing the remote functioning of your teams. Also, focus on communication practices and be aware of existing time-zone, cultural, and language barriers. Your business needs to come up with suitable ways to eradicate these obstacles. While it is true that time zone variations often complicate the process, but they do provide the benefit of facilitating 24 X 7 work on a project.
Running an offshore software development company is challenging, but if you can manage to weather the initial hurdles, then the sky’s the limit. Utilize sophisticated technology to develop software on behalf of clients that brings them one step closer to success, and you are sure to gain recognition in the industry.